Key infra projects seen to boost Cebu tourism

CEBU, Philippines — Cebu’s tourism industry will see more growth once key infrastructure projects are completed.

Joey Bondoc, research manager at Colliers International Philippines, said that aside from the expansion of Mactan-Cebu International Airport (MCIA), Cebu should be able to entice more tourists over the medium term given the completion of other key infrastructure projects that will considerably ease travel within the city and its environs.

These projects include the Cebu-Cordova toll bridge and the Cebu Bus Rapid Transit (BRT) system.

"These major road transport projects should complement the rehabilitation and upgrading of national and local roads being undertaken by the Department of Public Works and Highways (DPWH)," he told The FREEMAN.

Cebu is among the provinces that will benefit from the Duterte administration’s infrastructure and decentralization push.

Bondoc also cited other key developments that should boost Cebu’s tourism industry that include the lowering of airfares as airlines compete for bigger market share; approval of the ASEAN Multilateral Agreement in Air Services that allows Philippine air carriers to fly an unlimited number of times to the capital cities of other Southeast Asian countries; and Cebu’s emergence as a key meetings, incentives, conventions and exhibitions (MICE) destination.

"Over the past three years, Cebu successfully hosted a number of major international events such as APEC ministerial meetings, International Eucharistic Congress, and preliminary events of the recently-concluded Miss Universe pageant. Cebu is also among the cities that hosted a number of ASEAN 2017 meetings," the Colliers official noted.

With the increase in tourist arrivals, Cebu's overall hotel occupancy rate for 2016 improved to 68 percent from 65 percent in 2015.

"Robust occupancy rates of Deluxe and First Class hotels indicate the continued influx of high-spending tourists. This should sustain hotel occupancy of between 65 percent and 70 percent across Metro Cebu in 2017," he said.

He said Cebu tourism will also benefit from the Philippine and Chinese governments’ signing of an agreement on tourism cooperation that includes exploring a possible increase in capacity entitlements in air services and encouraging airlines to open new flights between Philippine cities in the Visayas and Mindanao regions and Chinese cities.

"This will complement GMCAC’s (GMR-Megawide Cebu Airport Corp) plan to open new routes to Australia and Europe as well as expand existing routes to Japan and South Korea," Bondoc said.

GMCAC, MCIA's private operator, is building a second terminal at the airport expected to be operational by June of next year and is seen to increase the airport's capacity to 12.5 million passengers per year.

In 2017, the company was able to bring in 22 major international and domestic airlines serving 33 domestic and 16 international destinations.

Passenger traffic at the country’s second busiest airport reached 5.17 million from January to June this year, hitting half of the airport's 10 million passenger arrival target for 2017.

Based on official data from MCIA Authority, Mactan airport's passenger traffic in the first half rose 16 percent to 5.17 million from 4.46 million in the same period last year.

During the six-month period, international passengers grew 40 percent to 1.59 million from 1.14 million last year.

While domestic passengers reached 3.58 million, up 8 percent from 3.32 million.

GMCAC seeks to pursue new and diverse routes and increasing travel and tourism to the Visayas-Mindanao regions.

For the next two years, the firm is planning to introduce new routes that will connect Cebu to Australia, Europe and other Southeast Asian countries, as well as expand routes to China, Japan and South Korea. (FREEMAN)